Section 20

Fines

A. Fines as set out in paragraphs [B] to [F] below when and to the extent  that they are imposed in respect of an entered ship by any court, tribunal or authority and are imposed:

i. upon the Member, or

ii. upon any person whom the Member may be legally liable to reimburse (other than under the terms of a contract or indemnity) or reasonably reimburses with the approval of the Managers, or

iii. upon any person whom the Member may be legally liable to reimburse under the terms of a contract or indemnity, but only if and to the extent that such terms have previously been approved by the Managers in writing.

B.  Fines for short or overlanding or over delivery of cargo, or for failure to comply with regulations relating to declaration of goods or to documentation of the entered ship in respect of her cargo;

C.  Fines for smuggling or for any infringement of any Customs law or Customs regulation relating to the construction, adaptation, alteration or fitment of the entered ship;

D.  Fines for contravention of any law or regulation relating to immigration;

E.  Fines in respect of an accidental discharge or escape of oil or other substance, or the threat thereof;

PROVIDED ALWAYS that

There shall be no recovery from the Association in respect of fines arising out of

i. the overloading of an entered ship or

ii. infringements or violations of or non-compliance with the provisions regarding construction, adaptation and equipment of ships contained in the International Convention for the Prevention of Pollution from Ships, 1973, as modified or amended by the Protocol of 1978 and any subsequent Protocol, or such of those aforesaid provisions as are contained in the laws of any State giving effect to that Convention

or to such Protocol.

F. Any fine (other than those specified in paragraphs [B]-[E] above) to the extent that:

i. the Member has satisfied the Directors that he took such steps as appear to the Directors to be reasonable to avoid the event giving rise to such fine, and

ii. the Directors in their discretion and without having to give any reasons for their decision, decide that the Member should recover.

G.  Confiscation of the entered ship

Notwithstanding the terms of Rule 8 [D] [iv] [(i)], the Directors in their discretion may authorize the payment, in whole or in part, of a Member’s claim for loss of an entered ship following confiscation of the ship by any legally empowered court, tribunal or authority by reason of  the infringement of any Customs law or Customs regulation.

PROVIDED ALWAYS that

a. the amount recoverable fromthe Association shall under no circumstances exceed the market value of the ship without commitment at the date of the confiscation;

b. the Member shall have satisfied the Directors that he took such steps  as appear to the Directors to be reasonable to prevent the infringement of the Customs law or Customs regulation giving rise to the confiscation;

c. any amount claimed under this paragraph [G] of Section 20 shall be recoverable to such extent only as the Directors in their discretion may determine without having to give any reasons for their decision;

d. no such claim shall be considered by the Directors until such time as the Member has been deprived of his interest in the entered ship.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18